June 20, 2022 – Jianpu Technology Inc. announced unaudited financial results for the first quarter ended March 31, 2022. Jianpu delivered another solid quarter of growth in the first quarter, with total revenue up 42.6% year-over-year. The results were primarily driven by the Company’s persistence in pushing forth on the vision of “To become everyone’s financial partner”: empowering users and enabling the digital transformation of financial service providers through technology and product innovation.
The company achieved a more diversified and balanced revenue structure, driven by the growing revenue contribution from new business initiatives. Revenue from loan recommendation services, credit card recommendation services, big data and system-based risk management services, and advertising, marketing services and other services accounted for 22%, 47%, 10%, and 21% of the total revenue, respectively, compared to 19%, 54%, 18% and 9% in the corresponding quarter of 2021.
Among the revenue streams, the Company’s recommendation business continued to gain market share, with revenues increasing 35.6% year-over-year. Jianpu maintained solid relationships with the majority of online credit card issuing banks and remains the top online customer acquisition channel in terms of the number of customers referred for many of these banks.
Alongside the recovery of the business, economies of scale crept in with a clear trend of improvement in efficiency. Anticipating the uncertainties and challenges arising from the macro environment and regulatory changes, Jianpu has strived to balance growth and efficiency. Its proprietary social media and partner program has played an increasingly important role in delivering both growth and efficiency. The ROI (revenue divided by the corresponding cost of acquisition and promotion) of new businesses has made promising progress, delivering an increase of 10 percentage points quarter over quarter.
Jianpu has further enhanced its capabilities to enable the digital transformation of the financial industry and other industries. The Company has seen an increasing demand from financial institutions to acquire, identify and profile their users across different channels to provide better service and improve customers’ lifetime value. The Chinese Government is focused on the importance of technology empowerment of banks, and has recently issued policy directives for banks to carry out process innovation and business innovation, directing support for the digital transformation of the banking and insurance industry. Jianpu’s omni-channel marketing solution is well-positioned to capture this increasing demand and respond to the Government’s call. The Company recently started to explore different traffic acquisition channels with various consumption scenarios, such as travel, lifestyle, and e-commerce. The expansion and integration of new channels will allow the Company to diversify its user base and further strengthen its omni-channel solutions to enhance the customer acquisition capability of financial institutions.
The Company remained very disciplined in executing its cost optimization initiatives, further streamlining its cost structure and enhancing the productivity of its businesses. Operating losses were reduced by 18.6% year-over-year, and the Non-GAAP adjusted net loss margin further improved by 9.5 percentage points compared to the same period of 2021.
Mr. David Ye, Co-founder, Chairman and Chief Executive Officer of Jianpu, commented, “We maintained our growth momentum this quarter while forging ahead with a laser focus on technology-driven development. Financial institutions have placed increasing emphasis on improving user retention and customer loyalty post-customer acquisition. This brings ample business opportunities for us as we explore ways to enhance their operations through our cutting-edge technologies and operational expertise.”
“Despite the uncertainties around the ongoing covid-related lockdowns, we continue to be encouraged by broader policy support and remain very confident about the long-term prospect of the financial industry and the opportunities it brings us,” concluded Mr. Ye.
With the Government’s guidance for banks to increase their loan balances, Jianpu is seeing a growing number of credit cards issued and loans issued for small and medium-sized enterprises, an indication of liquidity being injected into the financial system. Jianpu believes that the policy support from the Government bodes well for the economy and will bring about an increasing digital transformation trend for financial institutions. Jianpu will continue its efforts to empower financial institutions’ digital transformation and support the development of China’s digital economy.